Right Thinking from the Left Coast

Tag: the myth of American exceptionalism

It is a common misconception here that those folks living outside the US cannot comprehend what it is like to be an American, or understand how we do things here. Along those lines, the inevitability of a declining America with other nations filling the vacuum, doing capitalism better and more efficiently than we do, beating us at our own game, is all difficult to digest.
A Russian journalist and contributor of Pravda would like us to think that black is white, that Russia is turning into the new America, the new land of opportunity and freedom, while America, saddled with the new Stalin incarnate, is doomed to follow in the footsteps of the Bolsheviks of their history with the resultant misery and suffering riding shotgun;

His cult of personality mesmerizes those who cannot go beyond their ignorance. They will continue to follow him like those fools who still praise Lenin and Stalin in Russia. Obama’s fools and Stalin’s fools share the same drink of illusion.

Russia still has a long way to go to become that Milton Friedman paradise he envisions, but the author’s finger on our pulse reveals an erratic heartbeat with no assurances of longevity. They still don’t do elections very well and comes in a close second to Afghanistan in governmental corruption (at least we don’t have troops there) but world markets, including many American companies, are dipping a toe into the Russian pool. For purposes of transparency (too bad that disappeared here long ago) they are removing themselves and their influences (to a degree) from public companies. Governmental officials cannot now remain on the boards of these companies.

Russia has a uniform rate of tax on the income of individuals. As of 2012 tax in Russia is payable at the rate of 13% for an individual on most income. (non-residents 30%). Russian residents pay 9% on dividend income. (Deduction at source).
Non-residents pay 15% on dividend income.
Exemptions are granted to certain income earners.
The standard rate of Russia corporate profit tax in 2012 is 20%.
Companies pay 9% tax on dividend income.

Yep, they like many other ex communist countries figured out a long time ago that lowering the tax rate widens and increase the tax base. Why can’t the Democrats figure this out.

Russia is now a member of the World Trade Organization, a seal of approval for buck foreign bucks flowing in to Russian markets.

Unreasonable expansion of the budget deficit, accumulation of the national debt – are as destructive as an adventurous stock market game.
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“We must seek support in the moral values that have ensured the progress of our civilization. Honesty and hard work, responsibility and faith in our strength are bound to bring us success.”- Vladimir Putin

Dang, they get it. A federal deficit at 1.4% of GDP, with it a projected surplus by 2015, an increased standard of living within the work force, an approximate 20% year over year growth of the export to import ratio, and an ever increasing instability in its currency (not silly QE manipulation allowed over there) the Russians have learned about the profit motive, and human nature.

Seismic shifts are occurring all around us.Has America reached it’s high water mark?